Economics of Stadiums (NFL Division)

So Atlanta and the Falcons are going to spend $1B for a new stadium.
http://tracking.si.com/2013/03/07/falcons-atlanta-mayor-reach-deal-new-stadium/?sct=hp_t2_a5&eref=sihp

The Georgia Dome is only 21 years old. This is ridiculous. If the new stadium is used that long (probably bad assumption); its $50M/year. Is that worth it? I believe that's a huge waste of money. We're talking 12 (w/o playoffs) games/dates a year. At least in a baseball venue, there are 81 games a year. 12, that's it. I know you can use it for alternatives but its all about the NFL dates.

I know that its being announced that the public is only putting up $200M, but no one talks about the infrastructure changes needed and their costs.

 

where's the Final Four this year?

Georgia State plays its home games there. Doesn't the SEC play the championship game there?
Its used more than for the NFL, but It's a huge waste of money for taxpayers, let private business pay for it, that's Capitalism. Or is Capitalism getting the government to buy things for you?

 

The $200M is coming from a hotel tax, not from local residents.

 

It's hard for teams to sell PSL's unless the build a new stadium. Should be fun to watch.

 

We have a bingo.

 

So if they had a hotel tax, but not a stadium they would raise $200,000,000.00 for use by the local citizens? for example, education? hospital care for poor people? road repair?

 

The Georgia Dome was built for $354 million in TODAY's dollars.
I haven't heard what the impetus is for the new stadium. Has the NFL said the GD can't handle another Super Bowl? Was the original construction due more with the Olympics in mind and not so much the economics of the NFL (i.e. luxury suites).

 

The impetus is that everybody has to get in the door with their extortion tactics before the NFL puts a team in LA and that threat dries up.

 

Unless you can figure a way to use it as an Expo Center or something like that, there is no way it is worth that kind of money. And even then, it's not worth that kind of money.

Plus, it's Atlanta. Dallas, New York, Chicago... those are about the only locations that have the combination of city size with fan base to pull something like that off. Maybe DC, but DC, to me, does not seem like a big convention destination.

 

If the Falcons are going to actually pony up $800 million, this isn't an especially outrageous deal. I'm not in favor of millionaire socialism or trickle-down economics, but that's a lot of money to pump into the Atlanta economy and for a little while at least, a good number of jobs created. It's like a 2013 version of a WPA project.

(Of course it'll probably turn all pear-shaped when the other details are revealed but for the moment, let's give NBC benefit of the doubt.)

 

Don't think local residents -- even those who never set foot in a hotel room -- aren't going to be paying a goodly portion of that tax.

 

This line gets trotted out all the time, but it has never been shown to be true in the least.

Arthur Blank has $1.6 billion. If it's such a great deal for everybody, he can kick in the extra $200 mil.